By Real Estate Search and Sale, LLC, with more than 20 years of real estate experience. Broker: Carolyn Thompson, ABR, CRS, MRP.
Capitol Hill and Georgetown in Washington DC, along with Rockville, Bethesda, Silver Spring, Gaithersburg and Frederick in Maryland, are a sampling of the many communities Real Estate Search and Sale, LLC serves.
On Capitol Hill in Washington DC, Eastern Market has hosted food vendors, artisans and a weekend flea market since 1873, a few blocks from the Library of Congress. In Georgetown, the C&O Canal towpath and Georgetown Waterfront Park run along the Potomac River near the shops and restaurants of M Street. In Rockville, Rockville Town Square brings together restaurants, shops, the Rockville Memorial Library and seasonal events, and Pike and Rose along Rockville Pike in North Bethesda adds a movie theater, dining and concerts. In Gaithersburg, the Kentlands neighborhood is known for its walkable Main Street, and Seneca Creek State Park offers trails around Clopper Lake. In Frederick, the historic downtown pairs restaurants and antique shops with Carroll Creek Linear Park, a landscaped walkway with fountains and public art.
Whether now is a good time to buy a house often depends on the deal you're able to get, not just on the market. Two buyers can purchase in the same month, on the same street, and end up in very different places because of the terms they negotiated. One pays full price and brings every dollar of closing costs. The other negotiates help with closing costs, a lower interest rate paid for by the seller, or owner financing that fits an unusual income picture. A good time to buy is when you find the right home on terms that work for your budget and your plans.
This guide walks through what the Washington DC area market looks like right now, then covers four ways buyers create a better deal: owner financing, seller assistance with closing costs, a rate buydown paid by the seller, and buying a home that needs work at a discount. For each one, you'll find the benefits, the trade-offs and the questions to ask before you write an offer.
Across the Washington DC metro area, the median sold price through September 2026 was $640,000, up 1.6% from a year earlier, while active listings in September were up 20.1%, according to Bright MLS. In Montgomery County, homes sold for an average of 97.3% of their original list price in September, according to the Greater Capital Area Association of REALTORS®. In Washington DC itself, the median sold price through September was $670,500, nearly even with last year, and homes averaged 46 days on the market in September.
Put simply, buyers in Washington DC and the Maryland suburbs have more homes to choose from, more time to decide and, in many cases, more room to negotiate than they've had in several years. Mortgage rates are higher than they were earlier in the year, with the Freddie Mac 30-year average above 7% this fall, which makes the terms you negotiate matter as much as the price. For the full picture, including a month-by-month rate history, see our 2026 Washington DC metro real estate market update.
Nobody can reliably predict where prices or mortgage rates will go next. What you can control is the home you choose and the terms you agree to. A home that has been on the market for several weeks, a seller who has already moved, an estate sale, or a house that needs updating can all create room to negotiate. When we evaluate an opportunity with a buyer, we look at four things together:
A small price cut changes only the first item. Seller help with closing costs changes the second. A rate buydown changes the third. A home that needs work at a discount can change all four. That's why the structure of the offer often matters more than the month you buy.
In owner financing, also called seller financing, the seller acts as the lender. Instead of borrowing the full amount from a bank, the buyer makes payments to the seller under a promissory note, and the home secures the loan through a deed of trust recorded in the land records. Terms are negotiated between buyer and seller, and each side should have its own attorney prepare or review the note and the security documents.
Owner financing tends to fit best when the seller owns the home free and clear or has substantial equity, and when the buyer has a solid down payment but doesn't fit a traditional loan neatly. Here are the benefits each side may gain.
Owner financing works only when the paperwork is right. If the seller still has a mortgage, most loans contain a due-on-sale clause, so the seller's lender must be paid off or must agree. Federal and Maryland lending rules may apply to some seller-financed sales, depending on how many the seller does and how the loan is structured. A balloon payment means the buyer must refinance or pay off the balance by a set date, so plan for it from the start. The seller should consider the buyer's ability to pay, and the buyer should get a home inspection and title insurance just as they would with any purchase. An attorney can explain the rules that apply to your situation. Real Estate Search and Sale, LLC does not provide legal, tax or lending advice.
Sellers can agree to pay part of the buyer's closing costs, often called seller concessions or seller assistance. Instead of lowering the price, the seller credits money at settlement toward costs such as lender fees, title insurance, recording fees, prepaid interest and the initial deposit into the escrow account for taxes and insurance.
Every loan program limits how much a seller can contribute. Conventional loans generally allow 3% to 9% of the price depending on your down payment, FHA loans allow up to 6%, and VA loans allow concessions of up to 4% plus certain normal closing costs. A credit can't exceed your actual closing costs. Your lender can confirm the limits for your loan before you write the offer.
A rate buydown uses money paid at settlement to lower the buyer's interest rate. A permanent buydown pays discount points to reduce the rate for the life of the loan. A temporary buydown, such as a 2-1 buydown, lowers the rate by two percentage points in the first year and one point in the second, then the payment returns to the full note rate.
Lenders usually qualify you at the full note rate for a temporary buydown, so make sure the full payment fits your budget. A seller-paid buydown counts toward the seller contribution limits described above.
Homes that need updating or repairs often sell for less than move-in-ready homes nearby, and fewer buyers compete for them. Estate sales, long-time owners who haven't updated in decades and sellers who prefer to sell as-is are all common sources of these opportunities in Montgomery County, Frederick County and Washington DC.
A thorough home inspection and written contractor estimates before you commit help you understand what you're taking on. Ask your lender which renovation programs you qualify for and how they handle contractor bids, permits and draw schedules. Real Estate Search and Sale, LLC can provide contact information for independent licensed inspectors and contractors, and you are free to use any provider you like. Real Estate Search and Sale, LLC does not receive payments from service providers whose contact information we share. Learn more in our guide to home inspections for Maryland home buyers.
Public programs can work alongside the options above. The Maryland Mortgage Program offers home loans and down payment assistance for eligible buyers in Maryland, and the Washington DC Department of Housing and Community Development runs the Home Purchase Assistance Program for eligible Washington DC buyers. Eligibility, income limits and terms change, so check each program's website and ask your lender which ones you may qualify for.
| Option | What it changes most | Who it often fits | Who to ask |
|---|---|---|---|
| Owner financing | How you qualify and the loan terms | Buyers with a solid down payment and nontraditional income; sellers with equity who want income | Each side's attorney and accountant |
| Seller assistance | Cash needed at settlement | Buyers with a down payment but limited savings for closing costs | Your lender |
| Rate buydown | Monthly payment | Buyers focused on a comfortable payment | Your lender |
| Home that needs work | Price, and the value you can add | Buyers with time and vision for updates | Your lender, inspector and contractor |
We look at recent comparable sales, how long a home has been on the market and any price changes to understand where a seller may have room to move. Then we structure the offer around what matters most to you. Our broker holds the ABR (Accredited Buyer's Representative) designation, focused on representing buyers, and the CRS (Certified Residential Specialist) designation. As a Military Relocation Professional (MRP), she also works with military and federal families relocating to the Washington DC area. Most of our business comes from referrals, and a list of references is provided on request.
Whether it's a good time to buy often depends on the deal you're able to get, not just the market. In Washington DC and the Maryland suburbs, buyers have more homes to choose from and more room to negotiate than in recent years. Your lender can tell you what current rates mean for your budget.
No one can predict rates. If you find the right home on good terms now, your lender can tell you whether refinancing later could be an option.
Money the seller agrees to credit toward the buyer's closing costs or a rate buydown at settlement. Loan programs limit how much a seller can contribute.
It depends on your loan. Conventional loans generally allow 3% to 9% of the price based on your down payment, FHA allows up to 6%, and VA allows concessions of up to 4% plus certain normal closing costs. Your lender will confirm the limit for your loan.
The seller acts as the lender, and the buyer makes payments to the seller over time under a promissory note secured by the home. Terms are negotiated, and each side should have an attorney review the documents.
Steady monthly income, interest earned on the sale, a larger pool of buyers and possibly the ability to report the gain over time as an installment sale. Sellers should talk with their accountant and attorney first.
Usually only if the seller's loan is paid off at settlement or the seller's lender agrees, because most mortgages contain a due-on-sale clause. An attorney can review the options.
A temporary buydown that lowers your rate by two percentage points in the first year and one point in the second year. In year three, your payment returns to the full note rate.
Often, for the monthly payment, but not always. Your lender can show you both scenarios side by side so you can compare.
Often, yes. Renovation loans such as the FHA 203(k) and Fannie Mae HomeStyle programs can combine the purchase and repairs in one loan for qualified buyers. Ask your lender which programs you qualify for.
Yes. The Maryland Mortgage Program and the Washington DC Home Purchase Assistance Program help eligible buyers. Check each program's website for current eligibility.
No. Real Estate Search and Sale, LLC does not provide legal, tax or lending advice. Please talk with your lender, attorney and tax professional.
Yes. A list of references is provided on request.
Learn more on our home buying services and first-time home buyer services pages.
Capitol Hill, Georgetown, Rockville, Bethesda, Silver Spring, Gaithersburg and Frederick are only a sampling; we serve many more communities throughout Maryland, Washington DC, Virginia, West Virginia and Florida. Talk with us confidentially any time at our 24-Hour Appointment Desk, 202-630-5070.
Wire fraud alert: Criminals target real estate transactions with emails and texts that appear to come from agents, title companies and lenders. Real Estate Search and Sale, LLC never sends wiring instructions by email or text. Before you wire any money, call your title company or settlement attorney at a phone number you have verified independently, never one taken from an email or text, to confirm the instructions. If you suspect fraud, contact your bank and the title company right away.